That`s right. The factory outlet business has become a magnet for tourists and an economic bonanza for manufacturers.

Pick a tourist area in New England, or elsewhere, and chances are it is surrounded with outlets catering to people who abhor paying full retail prices when discounts of up to 80 percent are available.

Not too long ago, the only places outlets were found were in factories or mills, where dingy, creaky stairways led to huge savings on discountinued or slightly irregular merchnadise.

Bristol County, Mass., home to the twin manufacturing cities of New Bedford and Fall River, was undisputed king of the factory outlet business in New England.

Now, the title belongs to North Conway, N.H. A drive along U.S. Hwy. 16, the main drag, finds almost nothing but factory oulets and fast-food restaurants. At last count there were more than 50 outlets in town and a factory outlet association as well.

``They seem to be opening up almost daily,`` said Judy Barker, Mt. Washington Valley Chamber of Commerce visitor information specialist. ``It`s becoming a viable part of the conomy at this point. Part of the popularity is the fact that New Hampshire has no sales tax.``

Even Fall River Knitting Mills, a factory outlet pioneer, now has a branch in North Conway--and in Newport, R.I.; Hyannis, Mass.; Wells, Me.; and Queechee, Vt.

``Everybody has jumped on the bandwagon,`` said James Reitzas, Fall River Knitting Mills owner and grandson of the firm`s founder. ``Twenty-five years ago, we opened a branch in Hyannis. Now, everybody wants one, and everybody wants to be near you.``

He said the boom in tourist areas was natural.

``On a rainy day or a beach day, you have people with nothing to do,`` he said, ``so tourists come in to buy Christmas gifts in August, or birthday presents. The price and quality are right, and that`s what counts.``

In some places, such as Kittery and neighboring Portsmouth, N.H., malls have sprung up devoted to nothing but factory outlets. Along the 33-mile stretch of seacoast from Hampton Beach, N.H., to Wells, Me., there are now more than 200 outlets.

Betty Janiak of Wakefield, mass., drove up one summer day to the Mikasa factory store, which offers discounts of up to 80 percent on its china, crystal, flatware and giftware.

Janiak was putting boxes of china in her trunk when asked about her preference for factory stores. She saw a tea kettle inside for $10 that she said was advertised in Boston`s Jorday Marsh department store for $75.

She bought 12 place settings of Mikasa china for $155. A couple of years ago, she paid $90 at retail for 4 place settings that she gave to her daughter.

``What I bought here today would have cost me $300 or $350 in Massachusetts,`` Janiak said. ``But I wouldn`t come here on a Sunday. It`s unbelievable. You can`t even get in the parking lot.``